I think people are smart. Most people get through the day. They take care of their needs and move on to their wants. Do they always make the right decision? No. But they learn from bad decisions. They stop touching the stove. They can even watch TV.
Most people I work with think people are stupid. They think they can make better decisions than other people can. For example, left on their own, people will put houses on every square inch of land. They will starve themselves as farm land is converted to subdivisions. People left on their own will commit mass suicide. That is why we need myself and the people I work with. We are all working suicide prevention hotlines "saving humans from themselves."
Sam (who has had some good posts lately) and I discussed this Cafe Hayek post about the current account deficit. Sam says the guy is missing something. In particular US government spending is out of control.
My thoughts on government spending are transparent. Government should not exist must less spend.
But I do not see any problem with the post. Trade is mutually beneficial. People are smart. The Chinese give us consumer goods. We give them safe investments. The Chinese are not stupid. Americans are not stupid. It is give and take. No one is forcing anyone to do anything.
One day Americans might conclude those Chinese goods were bad decisions. The Chinese might see those safe investments were not so safe after all. Everyone will learn from these bad (or good) decisions and move forward with life.
But people will figure it out for themselves without the help of the suicide prevention hotline.
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2 comments:
I agree with the majority of what you say. I agree that people are generally smart. The fallacy here is personifying governments and institutions. I hope to have a post up about it soon.
There is no doubt we need to stop personifying institutions.
Government is not an entity.
Only the individual can act.
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